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With the Private Equity market predicting a long-awaited bounce back….

With the Private Equity market predicting a long-awaited bounce back, will Interim professionals be the go-to resource for forensic review and ongoing support?

Private equity firms are champing at the bit, as the sector is poised for a strong bounce-back in 2024. Private equity executives have predicted that asset sales between private equity groups will rebound strongly in forthcoming months. The forecast was made at the World Economic Forum 2024, which took place in Davos this month.

A sharp increase in takeover activity is expected, as buyout firms, which have been holding on to investments in anticipation of higher prices, have finally began to capitulate. Amid rising interest rates making financing more difficult and valuations in decline, recent years have seen a significant drop in private equity groups selling portfolio prices, markedly contrasting to its peak in 2021. However, the tide seems to be turning, with buyout firm investors starting to increase pressure on groups to sell long-held investments and begin returning cash, forcing them to contend with lower prices and lock in returns.

Talking to the Financial Times in Davos, Pete Stavros, co-head of global private equity at KKR, said: “Sellers have conceded to lower valuations and the pressure to meet a certain return on investment is ticking.”

Anna Skoglund, head of the European financial and strategic investors group at Goldman Sachs, spoke of how there is a real sense of pragmatism setting in. “For the last 24 months, there has been a disconnect on valuation expectation between buyers and sellers,” she told FT.

Private equity executives forecast that there will be an especially robust rebound of asset sales between private equity groups, which, in recent years, have accounted for around half of the overall takeover activity.

As investors poise for a rebound in activity, interim M&A and financial specialists are likely to be in high demand. With expertise in mergers and acquisitions, particularly on the buy-side, such professionals are likely to prove an invaluable resource in assisting private equity firms with asset sales.

This go-to resource will forensically review the state of a firm’s existing investment and provide ongoing support to help private equity firms take advantage of the increasingly buoyant climate and opportunities available.

For private equity companies looking to capitalise on the forecasted bounce-back with the help of talented and experienced interim M&As and finance specialists, Bailey Montagu can find the right people for a firm’s unique needs.

Our interim solutions team invests time in understanding a private equity client’s requirement. We quickly shortlist candidates we feel will be able to help. Once the right M&A or financial professional is on assignment, we keep in touch with both the client and the interim professional to monitor progress.

Get in touch with our Interim team today to discuss all your requirements.

Phill Machell

Phill Machell, former Executive Director at Michael Page Interim, has been appointed as Partner at Bailey Montagu, one of the UK’s most innovative and respected executive search and interim management firms.